Bloomberg remains optimistic about Bitcoin (BTC) as long as it stays above an important resistance level.
Bitcoin Bollinger Bands. Source: Bloomberg
The latest report from Bloomberg analyst Mike McGlone claims Bitcoin is consolidating. He speculates that the price of Bitcoin Bollinger Bands is at the lowest point due to the reduced volatility.
$ 6,500 – $ 13,000 per critical area
In his opinion, Bitcoin is preparing to break out of the $ 13,000 resistance level. At the same time, believes that it is somewhat critical that the price does not drop below $ 6,500:
“Our graph shows the 260-day moving average with an increase in cryptocurrencies and the bands that have roughly marked the maximum of 2019 and the minimum of 2020 as a guide. If Bitcoin escapes from its cage, around $ 13,000 would be a good target for initial resistance. Staying below the lower band at around $ 6,500 would jeopardize the upward trend. “
Closer and closer to gold
McGlone notes that Bitcoin’s volatility compared to the same gold index is the lowest since the record-breaking 2017 uptrend and is well below average:
“The 260-day volatility in the same gold index is about 4.4 times higher, the lowest since April 2017. The average is 6.4 and the high in 2011 was 12.2.”
Bloomberg recently predicted that Bitcoin could return to its all-time high of $ 20,000 and even hit a new high of $ 28,000.